NCLT Mumbai Allows First Motion Merger Of CIE Aluminium Casting With CIE Automotive India

The National Company Law Tribunal, Mumbai has allowed the first motion application for the merger by absorption of CIE Aluminium Casting India Ltd with CIE Automotive India Ltd, under Sections 230-232 of the Companies Act, 2013.

A coram of Judicial Member K.R. Saji Kumar and Technical Member Anil Raj Chellan dispensed with the meetings of shareholders and creditors, as the transferor is wholly owned by the transferee and the scheme does not involve any compromise or diminution of creditors' liabilities.

The Tribunal however, directed notices to be served on shareholders and unsecured creditors, giving them 30 days to submit representations.

CIE Automotive India is formerly Mahindra Forgings Ltd. The company was renamed Mahindra CIE Automotive Ltd in 2013 and subsequently CIE Automotive India Ltd in 2023, after Mahindra & Mahindra exited its investment in the company. Thus, the present merger involves the successor entity of Mahindra Forgings.

The Tribunal noted that CIE Aluminium Casting has a paid up capital of ₹2.94 crore, while CIE Automotive India has paid up capital of about ₹379.36 crore.

CIE Aluminium Casting also has an unsecured borrowing of ₹169 crore apart from other unsecured creditors.

The Tribunal accordingly allowed the first motion application and directed service of the Scheme on the Regional Director, ROC, Income Tax authorities, Official Liquidator, Bombay Stock Exchange, National Stock Exchange, Securities & Exchange Board of India, Competition Commission of India, GST authorities and other applicable sectoral regulators.

The companies have to file affidavits of service and compliance reports within 10 working days.

For the Applicants : Advocates Hemant Sethi a/w Tanaya Sethi.